Annualized operating return on equity
11.5%, indicating solid profitability.
Net premium written (Insurance segment)
$1.9 billion, a 25% increase from Q1 2024, driven by the integration of the MidCorp and Entertainment Insurance Businesses.
Underwriting income (Mortgage segment)
$252 million, consistent performance despite challenges in mortgage origination.
Delinquency rate (U.S. MI business)
1.96%, indicating strong portfolio performance.
Invested assets
$43.1 billion, a 4% increase from year-end.
Net investment income and income from funds accounting
$431 million pre-tax, a decrease attributed to a special dividend payment and portfolio repositioning.
Cash flow from operations
Approximately $1.5 billion for the quarter, indicating strong operational performance.
Common shareholders' equity
$20.7 billion, reflecting a strong balance sheet.
Debt plus preferred to capital ratio
14.7%, indicating a low leverage position.
Book value per share
3.8% growth for the quarter, reflecting overall strong performance.
Combined ratio (ex-catastrophe)
81%, showing improvement across all segments compared to the same quarter last year.
Favorable prior year development
$167 million pre-tax, contributing 4 points to the overall combined ratio.
Reinsurance segment net premiums written growth
2.2%, impacted by reinstatement premiums and non-renewals.
Share repurchase
$196 million in Q1 and an additional $100 million in April, demonstrating disciplined capital management.
Wall Street analysts forecast ACGL stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ACGL is 107.62 USD with a low forecast of 93.00 USD and a high forecast of 131.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
13 Analyst Rating
Wall Street analysts forecast ACGL stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ACGL is 107.62 USD with a low forecast of 93.00 USD and a high forecast of 131.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
6 Buy
6 Hold
1 Sell
Moderate Buy
Current: 92.510
Low
93.00
Averages
107.62
High
131.00
Current: 92.510
Low
93.00
Averages
107.62
High
131.00
Barclays
Alex Scott
Equal Weight
maintain
$99 -> $104
2026-01-08
Reason
Barclays
Alex Scott
Price Target
$99 -> $104
AI Analysis
2026-01-08
maintain
Equal Weight
Reason
Barclays analyst Alex Scott raised the firm's price target on Arch Capital to $104 from $99 and keeps an Equal Weight rating on the shares. The firm adjusted ratings and price targets as part of its 2026 outlook for the North America property and casualty Insurance group. Pricing is softening across commercial and reinsurance, while personal lines look relatively better and brokers face organic growth headwinds, the analyst tells investors in a research note. Barclays recommends staying selective.
Evercore ISI
David Motemaden
In Line
maintain
$97 -> $100
2026-01-07
Reason
Evercore ISI
David Motemaden
Price Target
$97 -> $100
2026-01-07
maintain
In Line
Reason
Evercore ISI analyst David Motemaden raised the firm's price target on Arch Capital to $100 from $97 and keeps an In Line rating on the shares. With a tough cyclical backdrop, 2026 is "shaping up to be a challenging year for the P&C insurance sector," but this presents "a stock pickers market with opportunities for discerning investors," the analyst says in a year-ahead outlook note for the group.
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Goldman Sachs
Robert Cox
Sell
maintain
$84 -> $93
2026-01-07
Reason
Goldman Sachs
Robert Cox
Price Target
$84 -> $93
2026-01-07
maintain
Sell
Reason
Goldman Sachs analyst Robert Cox raised the firm's price target on Arch Capital to $93 from $84 and keeps a Sell rating on the shares. In a sector note on Americas Insurance, the firm said it expects "strong and fairly resilient" insurer profitability for the next few years, but added that it believes we are "solidly in the softening phase" of the P&C insurance cycle, which leads to "increased capital supply and competition, which should drive a deceleration in growth/pricing/margins, that we think are broadly underappreciated within Street estimates."
JPMorgan
Jimmy Bhullar
Neutral
maintain
$111 -> $117
2026-01-07
Reason
JPMorgan
Jimmy Bhullar
Price Target
$111 -> $117
2026-01-07
maintain
Neutral
Reason
JPMorgan analyst Jimmy Bhullar raised the firm's price target on Arch Capital to $117 from $111 and keeps a Neutral rating on the shares. The firm adjusted targets in the property and casualty insurance sector as part of its 2026 outlook. While fundamentals in the P&C sector "are getting more challenging," pricing, margin, and growth headwinds "seem better reflected in sentiment and valuation levels," the analyst tells investors in a research note.
About ACGL
Arch Capital Group Ltd. is a Bermuda-based company, which provides insurance, reinsurance, and mortgage insurance through its subsidiaries. The insurance segment consists of the Company’s insurance underwriting units, which offer specialty product lines, including construction and national accounts; excess and surplus casualty; professional lines; programs; property, energy, marine and aviation; travel, accident and health; warranty and lender solutions, and others (consisting of alternative markets, excess workers' compensation and surety business). The reinsurance segment consists of its reinsurance underwriting units, which offer specialty product lines, including casualty; marine and aviation; other specialty; property catastrophe; property excluding property catastrophe, and others (consisting of life reinsurance and other). The mortgage segment includes its United States primary mortgage insurance business, investment and services related to United States credit-risk transfer.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
